Energy Cable #48 – Natural Gas longs to Scholz: “Thank you!”
- Cohesion back at OPEC, but for how long?
- US the biggest winner in crude oil markets
- Scholz adding demand pressure in natural gas markets
Last week’s much anticipated OPEC meeting concluded with the decision to cut production further by 1 million barrels per day. Oil traders were not impressed as prices fell under USD 80 heading into the weekend. We note that there was a broad agreement for the voluntary cuts (Albait early rumors of some African countries being unhappy) and after the spring meeting in Vienna every member played to the same tune which now seems to begin being the case again.
How long will this hold is the biggest question. It seems very fragile to us, as both Iran and Russia need to finance their world wide escapades.
Chart 1: Cohesion about to come back in OPEC?
Happy Monday to everybody from a cold Copenhagen where we will quickly touch upon the OPEC meeting before we reveal why we are thanking Olaf Scholz.